AVX Corporation Announces Preliminary First Quarter Results

GREENVILLE, S.C.--(BUSINESS WIRE)--AVX Corporation (NYSE: AVX) AVX today reported preliminary unaudited results for the first quarter ended June 30, 2010.

Highlights:

• Revenue for the June 2010 quarter of $396.5 million increased 8% from the previous quarter and increased 36% from the first quarter of last year.
• Gross Profit margin improved for the eighth consecutive quarter to 26% in the current quarter compared to 23% in the previous quarter and 19% in the same quarter last year.
• Net income of $52.3 million, or $0.31 per share, for the June 2010 quarter.
• Dividends of $7.7 million, or at a $0.18 per share annual rate, were paid during the first quarter of fiscal 2011.

Chief Executive Officer and President, John Gilbertson, stated, “We are pleased to report first quarter results that reflect sequential improvement over the previous quarter in both revenue and margins as we successfully leveraged the higher volumes with productivity improvements. We are encouraged by the overall outlook for the electronic component industry as end user demand for electronic products continued to increase as evidenced by the strong bookings we recorded during the quarter.”

For the quarter ended June 30, 2010, net sales increased sequentially over the previous quarter by $29.1 million, or 8%, to $396.5 million. Gross profit as a percent of sales improved over both the previous quarter and the same quarter last year to 26%. Net income for the quarter was $52.3 million, or $0.31 per diluted share, compared to net income of $46.5 million, or $0.27 per diluted share in the previous quarter and net income of $24.3 million, or $0.14 per diluted share in the first quarter of the prior fiscal year.

Chief Financial Officer, Kurt Cummings, stated, “We have continued to generate positive operating cash flows. The Company’s financial position remains exceptionally strong with cash and cash equivalents and short and long-term investments in securities of $938.1 million and no debt at June 30, 2010. During the quarter, the Company paid $7.7 million of dividends to stockholders and spent $1 million to repurchase shares of AVX stock on the open market which are held as treasury stock.”

AVX, headquartered in Greenville, South Carolina, is a leading manufacturer and supplier of a broad line of passive electronic components and related products.

Please visit our website at www.avx.com.

AVX CORPORATION Consolidated Condensed Statements of Income (unaudited) (in thousands, except per share data)
		Three Months Ended
		June 30,
		2009		2010
Net sales	$	292,040	$	396,537
Cost of sales		237,198		293,885
Restructuring charges		700		-
Gross profit		54,142		102,652
Selling, general & admin. expense		27,331		30,510
Restructuring charges		300		-
Profit from operations		26,511		72,142
Other income		2,054		2,572
Income before income taxes		28,565		74,714
Provision for taxes		4,285		22,414
Net income	$	24,280	$	52,300
Basic income per share	$	0.14	$	0.31
Diluted income per share	$	0.14	$	0.31
Weighted average common
shares outstanding:
Basic		170,332		170,107
Diluted		170,332		170,467

AVX CORPORATION Consolidated Condensed Balance Sheets (unaudited) (in thousands)
			March 31,		June 30,
			2010		2010
Assets
Cash and cash equivalents		$	415,974	$	413,243
Short-term investments in securities			262,709		324,888
Available-for-sale securities			9,767		4,265
Accounts receivable, net			195,983		215,689
Inventories			357,105		369,814
Other current assets			74,820		73,706
	Total current assets		1,316,358		1,401,605
Long-term investments in securities			219,993		189,993
Long-term available-for-sale securities			5,339		5,740
Property, plant and equipment, net			247,029		233,648
Goodwill and other intangibles			249,412		248,288
Other assets			13,361		8,395
	TOTAL ASSETS	$	2,051,492	$	2,087,669
Liabilities and Stockholders' Equity
Accounts payable		$	104,421	$	113,987
Income taxes payable and accrued expenses			88,852		95,501
	Total current liabilities		193,273		209,488
Other liabilities			57,212		54,664
	TOTAL LIABILITIES		250,485		264,152
	TOTAL STOCKHOLDERS' EQUITY		1,801,007		1,823,517
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	2,051,492	$	2,087,669